Five Magnificent Seven Firms Oppose Stock Tokenization as Total Objectors Rises to 56
Summary
- Five members of the M7, including Tesla and Amazon, have expressed opposition to stock tokenization, adding to a growing wave of objections.
- The total number of companies opposing stock tokenization has now risen to 56, increasing pressure on efforts to push the business forward.
- With multiple M7 companies raising objections, the issuing companies' rights and consent are likely to become key issues in future stock tokenization projects.
Forecast Trend Report by Period
Opposition to stock tokenization is spreading, with five companies from the Magnificent Seven among the objectors.
Six more companies — Tesla, Amazon, Netflix, SpaceX, Lam Research and SoFi Technologies — have lodged objections to stock-tokenization businesses involving crypto exchange OKX and Intercontinental Exchange, Eleanor Terrett, host of CryptoAmerica, said on Nov. 3.
That brings the total number of companies that have expressed opposition to stock tokenization to 56. The group includes five of the Magnificent Seven — Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla — which dominate the U.S. stock market.
Stock tokenization refers to representing assets or rights linked to traditional shares as blockchain-based digital tokens. The concept has drawn interest from the global financial industry because blockchain technology can make trading and settlement more efficient.
The specific reasons for the latest objections were not disclosed. Terrett posted the update on X and questioned the rationale behind the opposition, citing Tesla Chief Executive Officer Elon Musk and SoFi CEO Anthony Noto.
As objections from major listed companies continue, attention is focusing on whether exchanges pursuing stock-tokenization businesses can reach agreement with the companies involved. With multiple Magnificent Seven firms raising objections, issuers' rights and consent stand to become key issues as the business moves forward.
